Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Fagor, manufacturer of domestic appliances, has filed for bankruptcy and is to make up to 2,000 staff redundant in Spain.
The company had run large deficits after the Spanish housing market had deteriorated from 2007 on. Bankruptcy was announced after a requested re-financing had not been approved by the cooperative network Mondragon.
Fagor’s management announced to save up to 1,200 workplaces internationally via relocation to other units of the group (most notably to Orona, Batz and Maier, Copreci). However, it is unclear to date how many jobs will be saved in Spain alone.
Workers organized several rounds of protests at different sites of the company.
Fagor employs about 2,000 staff in 5 production sites in Spain. Globally, the company operates 13 sites, employing 5,630 staff. Fagor’s French and Polish subsidiary also filed for bankruptcy.
UPDATE 20-01-2013:
According to recent sources, the restructuring will affect 2,093 workers, of which 1,603 are members of the cooperative. About 1,200 workers will be relocated while about 900 will be dismissed.
The Basque government aims at implementing a social plan, supported by the European Glogalisation Adjustment Fund (EFG).
Eurofound (2013), Fagor, Closure in Spain, factsheet number 76090, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/76090.